China Liansu's chairman invests $2.6m to show 'confidence'

By Steve Toloken
Staff Reporter / Asia Bureau Chief

Published: July 6, 2012 6:00 am ET

Related to this story

Topics Construction, Pipe/Profile/Tubing

HONG KONG (July 6, 12:55 p.m. ET) — The chairman and founder of China’s largest plastic pipe maker, China Liansu Group Holdings Ltd., has invested an additional HK$20.1 million (US$2.6 million) into the company, increasing his ownership share of the publicly-traded firm to a little more than 70 percent.

In a July 4 statement, Liansu said Wong Luen Hei made the investment to demonstrate his confidence in the company in the face of weak prospects for the global economy.

“As the chairman of the company, I raised my shareholding because of my confidence in the future development of the company,” Wong said in the statement. “The group expects the global economy in 2012 to remain sluggish, which casts a shadow over the industry.”

“However, as a leader in the plastic pipe industry, the group believes that its business can achieve stable and healthy development in the second half of this year with opportunities presented by the 12th Five-year Plan in urbanization, water conservancy infrastructure and environmental protection,” he added.

Liansu, based in Foshan, Guangdong province, is traded on the Hong Kong Stock Exchange. In its last earnings report, filed in March, it said sales in 2011 rose 31 percent to 10.14 billion Chinese yuan (US$1.61 billion) and profit rose 11 percent to 1.26 billion yuan (US$200 million).

But since then, other large plastics industry firms in China, such as Hong Kong’s Chen Hsong Holdings Ltd., have reported falling revenues and profits as both the European debt crisis saps global growth and China’s own economy slows.

Senior Chinese government officials have said recently that the country may not hit its target of 10 percent combined growth in imports and exports this year, and China’s central bank this week cut interest rates for the second time in a few weeks to try to bolster its economy.

Liansu’s next earnings report is due out later this summer, possibly in August.


Comments

China Liansu's chairman invests $2.6m to show 'confidence'

By Steve Toloken
Staff Reporter / Asia Bureau Chief

Published: July 6, 2012 6:00 am ET

Post Your Comments


Back to story


More stories

Image

Ply Gem continues acquisition streak, buying Simonton for $130 million

August 20, 2014 2:33 pm ET

Building materials manufacturer Ply Gem Holdings Inc. will acquire Simonton Windows from Fortune Brands Home & Security in a $130 million deal that...    More

Image

Pactiv selling building products unit to Ireland's Kingspan

August 19, 2014 3:54 pm ET

Irish building material manufacturer Kingspan Group plc is acquiring the insulation business of Lake Forest, Ill.-based Pactiv Building Products for...    More

Image

Mexichem buys HDPE pipe extruder Dura-Line Corp.

August 18, 2014 2:05 pm ET

UPDATED — PVC pipe and specialty chemicals maker Mexichem SAB de CV said Monday it has agreed to buy Dura-Line Corp., a prominent manufacturer...    More

Image

Acoustiblok soundly defeats cable show competitors

August 15, 2014 12:02 pm ET

Did you hear what happened when an ear-piercing train horn was enclosed in a flexible plastic membrane only a quarter-inch thick? Nothing.    More

Image

NSF International acquires Jana Labs to boost capacity in plastic-pipe testing

August 12, 2014 6:10 pm ET

Ann Arbor, Mich.-based NSF International has acquired the laboratory operations of Aurora, Ontario-based Jana Laboratories Inc. for an undisclosed amo...    More

Market Reports

Thermoformed Packaging 2014 Market Review & Outlook North America

This in-depth report analyzes economic and market trends, legislative/regulatory activity impacting supply and demand, business opportunities and threats, materials pricing, manufacturing technology, as well as growth strategies being implemented by thermoformed packaging companies.

Learn more

Pipe, Profile & Tubing Extrusion in North America 2014

U.S. demand for extruded plastics is expected to grow by 3 percent in 2014, with PVC remaining the largest segment.

Plastic pipe will post the strongest gains through 2018, continuing to take market share from competing materials in a range of markets.

Our latest market report provides in-depth analysis of current trends and their financial impact on the pipe, profile and tubing extrusion industry in North America.

Learn more

2014 Injection Molding Industry Report

GROWTH, OPPORTUNITY IN SIGHT FOR INJECTION MOLDERS IN 2014

In the wake of the economic turbulence earlier in this decade, molders today find themselves in much better shape. Molders are gaining a competitive advantage by investing in people, equipment and seeking inroads into new markets on a global scale.

Growth in the injection molding industry is going to be driven by low financing costs and a continued move to reshore some business.

Learn more

Upcoming Plastics News Events

September 10, 2014 - September 12, 2014Plastics Caps & Closures 2014

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

More Events